I can’t wait until the COVID-19 pandemic is behind us — way behind us… Hopefully we can go on and never look back at this again, and instead look to better times ahead.
That said, there are a number of so-called “back-to-normal stocks” that will benefit from America’s grand reopening as the pandemic (hopefully!) winds down.
One area of the stock market that’s already strong and bound to bounce higher as more vaccinations go around is back-to-normal airline stocks.
Why? Well, basically, airline names were left for dead, crushed in the aftermath of the start of the pandemic around this time this past year.
The chart above highlights the U.S. Global Jets ETF (NYSEArca: JETS), which of course tracks the major airlines.
As you can see, airline stocks fell off a cliff from February into March and April before bottoming in May 2020. The JETS ETF went from $33 all the way down to $11. This year, it’s had a huge move up before a recent pullback.
The upper blue line here is the 50-day moving average (the orange line is the 200-day MA), which is a strong level of support. Bulls want to see the fund stay above that line.
If you look at individual names like American Airlines Group Inc. (Nasdaq: AAL), Delta Air Lines Inc. (NYSE: DAL) and JetBlue Airways Corp. (Nasdaq: JBLU), it’s the exact same thing… a crash, a huge move up ahead of demand picking up, and a recent pullback.
The idea for these back-to-normal airline stocks now is to let them pull back and digest that huge move up before you decide if you want to enter a long position.
And airlines won’t be the only travel stocks that should see a boon. Check out my short video and let’s continue the discussion with back-to-normal airline stocks — and some cruise line names.
And as always, please like and subscribe to our YouTube channel and podcast, “Smart Money Circle,” where I interview some of the most brilliant minds in the business. You can also follow me on Twitter, and read more of my thoughts on the market at WealthPress and on Forbes, where I’m also a contributor.
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